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Need To Fund Nigeria’s Aviation Industry

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About 80 years ago, Ni

geria joined the league of aviation nations with the celebration of the first flight in Kano. Since its prosperous beginning, the industry has continued to drift like a rudderless ship.

This was the assessment of the Aviation Roundtable (AR), the sector’s watchdog, which described the state of the industry as comatose. Speaking through its president,  Captain Dele Ore and Secretary-General, Samuel Akerele, the AR said the industry had performed below expectation given the strides recorded by other countries which started at the same time with Nigeria.

“The industry in Nigeria is in doldrums”, they declared, pointing out that a cumulative impact of policies, bad decisions, the market competition and financing difficulty is destroying the Nigerian aviation industry.

Obviously, the biggest problem facing the Nigerian aviation industry seems to be lack of serious attention and political will. The economy also has much to do with its strength. It is against this backdrop that the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) before the just-concluded general elections said its members would not vote for any candidate that does not have the interest of the aviation industry at heart or in his agenda. Aviation Roundtables President, Captain Dele Ore, observed that airlines from advanced countries are stronger while those owned by Nigerians are denied the much-needed goodwill and very strong political base for survival.

In an indsturry which does not brook mistakes like the aviation, lack of adequate regulating will result to an attempt to cut corners with possible catastrophic consequences. The airport system the world over runs on support systems, which form the basis of its strength. In Nigeria, it is an orduous task running the airports with low capitalisation, wet and dry leasing of aircraft and unstable manpower retention rate, which are symptoms of an economically weak industry.

Stakeholders are divided over the seeming delay of allocations to managers who are saddled with the task of managing the 21 airports across the country. It is well known that the management of the Federal Airport Authority of Nigeria(FAAN) for some reasons has denied airport managers the needed funds to bring about seamless running of the airports. Attempts to impress on the authorities to fast-track the timely release of either monthly or quarterly allocation to the airports have been fruitless and the dwindling revenue of the airport authorities may have erected roadblock to attempts to bring about seamless operations at the nation’s gateways.

There is no doubt that the World Bank through its security and aviation projects programme is assisting the FAAN in fixing critical airport infrastructure in Nigeria. That is not enough for an industry that is very crucial to the nation’s economy.

Foreign airlines operating in and out of Nigeria are doing very well while the participation of Nigerian carriers is still negligible due to constraints brought about by bad policies of our government.

Unfortunately, the dwindling value of the Naira against other foreign currencies has worsened the situation for Nigerian airlines and it is even more disturbing that the nation has no credit agency exclusively put in place to fund aviation like other sectors of the economy. Furthermore, the interest rates charged by banks and financial institutions on loans are too high for any airline to borrow and operate profitably.

Some of the sore points in the aviation industry include the controversy over the N19.5 billion intervention fund, unfriendly policies, insensitivity in designating local operators on regional and international routes, the high attrition rate of aviation professionals as well as the invasion of lows on the runway of airports amongst others.

While celebrating Nigeria at 50 last October, the management of IRS Airlines said the aviation sector has fared well in the past 10 years but that more needed to be done to sustain the Category One status which only goes to show that the effort of the current administration has moved towards improving security and safety in the aviation sector. The certification of the category one also shows that there is confidence in the industry while passenger traffic has increased, showing that people are being encouraged to fly the various airlines in the country.

Although security at the 21 airports across the nation and a few other facilities have been strengthened in the past ten years to forestall further breaches, government should take second look at the aviation sector with a view to financing and working cooperatively to develop a global standardised approach as there is no doubt that the aviation sector still face a threat of how to sustain the system in the long-term.

For the air transport industry in this country to reach its projected growth potential, aviation authorities must work towards an integrated trans Atlantic system that will achieve standards. The EU, Canada and the US are among the highest in the aviation business in the world so Nigeria must step up her cooperation with these countries to have a clear way forward in the aviation industry.

Last year, FAAN introduced a new credit policy that would enable it to recover the over N20 billion debts owed it by airlines and concessionaires.

Though the policy appears laudable, the implementation has run into a hitch.

The new Director of Finance and Accounts of FAAN, Dr. Azuka Onyia, on her assumption of office, threatened to use every available means to recover FAAN’s debts, but the success of her action remains a matter of debate, how she intends to go about it in an industry where pressure from  Abuja could upturn the action.

Sometime ago, last year to be precise, the Air Transport Services Senior Staff Association of Nigeria passed a vote of no confidence on the Minister of Aviation, Mrs Fidelia Njeze for her inability to carry the industry forward, alleging that the Minister had derailed in repositioning the critical sector.

The association said the minister registered little or no achievements since her coming to office. They cited a case where ATSSAN wanted to adopt a measure to recover debts owned the various parastatals by domestic airlines but when Arik Airline ran to the minister on grounding its aircraft, the minister allegedly gave the impression that they have to take permission from her before they started grounding airlines and the unions were not happy about that. It takes a person with the political will to oversee the management of the aviation sector because the various parastatals including the airports require funds to perform their statutory duties.

Considering  the much complaints by FAAN over lack of funds, one is forced to call for a probe into the activities of the authority as there was an alleged misappropriation of funds in recent time. The Federal Government should provide funds for capital projects that stakeholders can monitor to ensure prudence and transparency.

Nigeria can not afford to lose the hardearned category one because of some unscrupulous elements, who for their personal interests defraud the aviation industry instead of using the resources or revenue coming out from the airports to provide infrastructure. There is seeming  lack of inconsistency in the FAAN management.

This is why the Federal Government must beam its light on the sector with a view to bringing it out of the doldrums.

Government should take urgent steps to address issues of infrastructure decay, the replacement of decaying infrastructure and provision of funds so that the industry can grow. The areas Nigeria needs cooperation or partnership with other giant airlines or countries include safety, security, technology, airport infrastructure, air navigation, ground handling and training, and of course, funding of the aviation sector.

An effective air transport sector is a critical element of a nation’s competitiveness. The international Air Transport Association’s (IATA) global standards and technical expertise can contribute significantly to the development of safe, efficient and environmentally responsible aviation in Nigeria and provide the country with a strong framework to help build an even more competitive Nigerian air transport sector, with the benefits being spread across the economy. The Nigerian aviation industry can achieve a grater standard if its finances are judiciously used with the application of industry-leading management.

Nigeria’s aviation infrastructure is a mess and its needs to get better. There is need for a comprehensive review of the funding of all government agencies at the federal, state and local levels including the airports to enhance productivity and service. Our politicians and leaders must have the political will to drive the aviation industry towards greater achievements, and the time is now.

There is no hard and fast rulers about this because there is a general attitude of mind of politicians about the relationship of travel or air transport expenditure to the total cost of maintaining the airports.

Shedie Okpara

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March 28 Rollout: FAAN Directs Airlines Integration Into National Single Window

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The Federal Airports Authority of Nigeria (FAAN) has directed all cargo airline operators to integrate their operations with the National Single Window (NSW) platform ahead of its official rollout in March 2026, in a move aimed at enhancing transparency, efficiency, and revenue collection in Nigeria’s trade ecosystem.
In a statement released last Tuesday to The Tide Correspondent at Omagwa Airport in Portharcourt, FAAN disclosed that its Directorate of Cargo Development and Services, in collaboration with the NSW implementation team, recently engaged key stakeholders across the aviation and cargo value chain to prepare them for the transition to the digital platform.
The statement said that during the engagement, cargo airline operators were directed by the Minister of Finance to begin submitting their air cargo manifests through the National Single Window platform as part of preparations for the official launch scheduled for March 27, 2026.
To ensure a seamless transition, FAAN said structured training sessions would be conducted for operators and other stakeholders ahead of the rollout to guarantee smooth adoption and effective utilisation of the system.
The National Single Window project, inaugurated by President Bola Ahmed Tinubu in April 2024, is designed to centralise and digitise the processing of trade documentation, including manifests, permits, licences and customs declarations, through a single electronic gateway.
With the platform entering its first operational phase on March 27, 2026, stakeholders expect significant improvements in the way trade-related processes are handled, particularly for freight forwarders, licensed customs agents and cargo operators.
According to project principals, the successful launch of the system is expected to boost the efficient collection of customs duties and other trade-related taxes by allowing traders to submit all required documentation electronically via one platform, eliminating the need to interface separately with multiple government agencies.
Other anticipated benefits include reduced administrative costs, improved transparency, enhanced security of trade procedures and increased foreign investment driven by a more predictable and efficient trade environment.
FAAN, MTN Nigeria Launch Free Wifi Service At Lagos, Abuja Airports
The Federal Airports Authority of Nigeria (FAAN) has partnered with MTN Nigeria to provide free WiFi services at the Murtala Muhammed International Airport (MMIA) Terminal 2 in Lagos and the Nnamdi Azikiwe International Airport in Abuja.
The service was officially launched on Thursday at the Lagos terminal.
FAAN’s Managing Director and Chief Executive, Olubunmi Kuku, who was represented at the event by the Director of Airport Operations, Abdullahi Mahmood, said the initiative is part of efforts to improve passenger experience and expand digital infrastructure at Nigerian airports.
According to FAAN, the service will be extended to the MMIA temporary terminal and other international airports across the country within the next three months.
Officials said the project is structured as a public-private partnership between FAAN and MTN Nigeria.
Speaking at the event, MTN Nigeria’s Chief Enterprise Business Officer, Lynda Saint-Nwafor, who represented the company’s Chief Executive Officer, Karl Toriola, said the company would ensure the service remains reliable and secure.
While FAAN described the rollout as a step toward modernising airport facilities, details of the funding model and long-term maintenance structure were not disclosed at the launch.
Airport users have long complained about limited or unreliable internet connectivity at major Nigerian terminals, particularly during peak travel periods.
However, FAAN did not immediately indicate whether the free service would be time-limited per user or subject to bandwidth restrictions.
By: Enoch Epelle
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Payment Of Cash: FAAN set February 28 Dateline in Nigeria Airport

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The Managing Director/Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has firmly reiterated the Authority’s resolve to fully implement a cashless payment system across all airport payment points nationwide, effective February 28, 2026.
The reaffirmation came during a visit by executives and members of the National Union of Air Transport Employees (NUATE), who sought clarification on the decision to discontinue cash transactions at airports in Lagos last Thursday.
The engagement provided an opportunity for robust dialogue, reflecting FAAN’s open-door policy and commitment to inclusive stakeholder consultation.
According to a statement by Henry Agbebire, Director, Public Affairs and Consumer Protection, FAAN, the MD/CE emphasised that the transition to a cashless system is not only in line with global best practices in aviation management but also consistent with Federal Government directives aimed at enhancing transparency, accountability, and operational efficiency.
She referenced a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation and signed by the Accountant General, Shamseldeen Ogunjimi, mandating the cessation of cash transactions in all government dealings.
The directive followed approval by the Federal Executive Council for Ministries, Departments and Agencies (MDAs) to discontinue physical cash collections and payments as part of broader public finance reforms.
According to the MD/CE, “There is no going back on this decision.” She stressed that the cashless initiative aligns FAAN with national financial management reforms while positioning Nigeria’s airports for greater operational integrity, improved service delivery, and stronger revenue assurance.
Importantly, Mrs. Kuku noted that the reform also forms part of FAAN’s broader strategic agenda to deepen stakeholder engagement by fostering transparency, building trust, and ensuring that partners, unions, concessionaires, and service providers are carried along in key operational decisions.
By proactively engaging NUATE and other critical stakeholders, FAAN continues to demonstrate that institutional reforms and stakeholder collaboration must go hand in hand.Beyond compliance with government policy, the MD/CE highlighted the enormous benefits of a cashless system to the aviation ecosystem, including reduction in leakages, improved transaction traceability, faster service delivery, and enhanced public confidence in airport operations.
Addressing concerns raised about the use of Paystack as a third-party platform, she clarified that Paystack merely serves as a payment gateway for processing transactions.
She assured stakeholders that no revenue is paid into any Paystack account, as all payments are made directly from Point of Sale (POS) terminals into designated Federal Government accounts.
The NUATE delegation was comprehensively briefed on the processes and strategies put in place to ensure a seamless transition by the February 28, 2026 deadline.
At the end of the engagement, the Union members expressed satisfaction with the explanations provided and acknowledged that the implementation framework is both tenable and practical.
The move marks another significant milestone in FAAN’s ongoing reform agenda, reinforcing its commitment to modernising airport operations, strengthening institutional accountability, and promoting constructive engagement with stakeholders across the aviation value chain.
By: Enoch Epelle
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Aviation Professionals Want Agencies Boards’ Inauguration 

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As a measure to curb corruption and restore accountability, the Association of Nigeria Aviation Professionals (ANAP), has called on the Minister of Aviation and Aerospace Development, Festus Keyamo, to push for the urgent formation and inauguration of governing boards for all other aviation agencies.
ANAP’s Secretary General,  AbdulRasaq Saidu, made this call at the weekend when interacting with aviation correspondents, in reaction to recent inauguration of Board of the Federal Airports Authority of Nigeria (FAAN).
Keyamo had recently inaugurated the FAAN board, more than six months after its members were appointed by President Bola Tinubu, where Dr. Umar Ganduje was named Board Chairman, with FAAN’s Managing Director, Olubunmi Kuku, as the Vice Chairman.
Other board members include representatives from the Ministries of Justice, Defence, Tourism, and Aviation, as well as professionals from the Nigerian College of Aviation Technology, and FAAN’s legal department.
The ANAP scribe there urged the aviation Minister not to stop at FAAN but to ensure that all aviation parastatals are given functional boards to restore order and credibility to the sector.
He, however, commended Keyamo for recently inaugurating the board of the Federal Airports Authority of Nigeria but stressed that more needed to be done.
Saidu also warned that the continued delay in constituting boards for other aviation agencies creates room for unchecked abuses, including illegal contracts, fraudulent employment practices, and mismanagement.
“The absence of governing boards violates the enabling Acts that established these agencies. Only properly constituted boards can enforce discipline, ensure due process in decision-making, and provide oversight to prevent corruption”, Saidu said.
He emphasised that the aviation unions, including ANAP, have consistently raised concerns about poor governance and lack of transparency within the aviation system.
He called on President Bola Tinubu to act swiftly by appointing board members for all relevant agencies, in the interest of fairness and aviation safety.
Saidu also tackled the former Minister of Aviation, Senator Hadi Sirika, for failing to inaugurate any boards during his eight-year tenure, despite appointments being made by former President Muhammadu Buhari.
“ANAP raised the alarm several times under Sirika’s leadership, but nothing changed. That lapse has continued under the current administration, and it must be addressed now”, Saidu stated.

By: Corlins Walter

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